STAKEHOLDERS APPROACH TO BUSINESS

Business Environment: The Stakeholders' Approach to Business

Business Environment: The Stakeholders Approach to Business

Introduction:

The role of stakeholders is crucial in success of any business or organization and that is why organizations are now focusing more on developing strong relations with their stakeholders besides focusing on other functions. For this purpose stakeholders approach is being followed by the organizations as this approach believes that managers/administrators should not only take into consideration the opinions of owner(s) but every stakeholders' of the organization. It is expected that using this approach the stakeholders will take an active interest in the well-being of the business.

Stakeholders of a company may include every person that has direct or indirect affect with the company. People who have direct stake in the success of an organization are primary stakeholders, whereas; those who have special or public interest stake in the organization are secondary stakeholders. (Freeman, 1984)

Mostly, in business employees, government, community, consumers/customers and owners are considered as the stakeholders. In this paper I would answer few questions that will help to assess the environment of an organization using the stakeholder approach. As an organization I have chosen University Canada West, because I am the stakeholder of this organization as I am a student in the university. Using the university as the organization, I will answer the following question in this paper:

Who are the stakeholders of University Canada West and what are their stake?

As aforesaid stakeholders are the person or group who have stake in the organization. In this regard staff of the university (from administration to support staff), students, alumni, employers of the student, community (local people and parents), competitors and owners is the stakeholders of the university.

The stake of the owner is simple and clear as to make its organization more profitable and recognized. But other stakeholders' stake can be examined by assessing their relevant interest or influence (stake) on the organization.

The chart of influence/1interest can be applied on the educational arena as mostly people limit this to the manufacturing organizations.

Student as the stakeholders has both interest and influence on the university as they seem university as an organization that will help them not only educate but to create a ladder for the career. This makes them student most valuable customer or stakeholder of the company. On the other hand staff also possesses the same importance in connection with influence or interest on the ...